International Business refers to the exchange of goods and services between two parties of different countries.
International Business may be understood as those business transactions involve crossing of national boundaries.
International Business is the process of focusing on the resources of the globe and objectives of the organization on the global business opportunities and threats in order to produce/buy/sell or exchange of goods and services worldwide.
Globalization – is an attitude of mind – it is a mindset which views the entire world as a single market so that the corporate strategy is based on the dynamics of global business environment. The concept of globalization has filled up the concept of International business. In fact, the term International Business was not popular before 2 decades. International Business is come from the word International marketing and International Marketing is come from the word International Trade.
International Trade – International Marketing:
Originally, the producers used to export their products to the nearby countries and gradually extended the export to far-off countries. Gradually the companies extended the operations beyond trade.
International Marketing – International Business:
The MNC’s which are producing in home country band marketing them in foreign countries, now started locating their plants and other manufacturing facilities in foreign/ host countries.
Later they started producing in one country and marketing in other foreign countries.
A true global companies views the entire world as a single market. There is a great reno vision, given by Arvindh Mills:
- Source raw material wherever they are cheapest.
- Manufacture wherever in the world is most cost effective.
- Sell in those markets where the prices are highest.
- Raise finance globally.
- ‘forge international strategy alliance.
- To manage all these, take the best talent from all over the And you will have achieved the stature of a true multinational.